The Evolution of Green Business
Kohlberg, Kravis, Roberts & Co (KKR) was founded in the 1970’s and orginally the company’s main business was in highly leveraged transactions. Recently they have assembled a groundbreaking venture that centers not simply on how much money they can make, but likewise on the environmental impact of the companies they buy.
KKR’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) got together last year, with the intention of making environmentally sound business practice an accepted idea. Issues like water pollution and inflated water consumption are high on their agenda.
To follow through with these goals, they apply eco-efficiency, this involves concepts such as maximum use of renewable resources, waste reduction, and optimizing data centers for efficiency. The program was successful, yet the KKR and EDF did not see the scope of the project’s advantages until the head of the Green Portfolio Project and global public affairs, Ken Mehlman, assessed the program after its first year in operation. Capping everybody’s expectations, Ken learned that this program not only served in preserving the local environment, but also increased the the net profit from all their companies as well. Just about all of the firms associated with Kohlberg, Kravis, Roberts & Co and Ken Mehlman today practice eco-efficiency. Still, with a 2009 business portfolio estimated at 86,000,000,000 dollars, you can be sure that this wasn’t an easy accomplishment. The initial project has developed far beyond its primary remit and today includes new and innovative initiatives. The Climate Corps Program set up by the Environmental Defense Fund is a great illustration of this, it promotes earth friendly business techniques to MBA interns. KKR and Ken Mehlman have been creating analytical tools which manipulate various resources. These products can assess a company’s progress and discover any problem areas.
Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to go green. So, in conclusion, the work of these organizations has made ecologically friendly business practice not only viable, but commercially desirable, and their revolutionary ideas are setting a new standard in today’s business world.
